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Full text of "War-time financial problems"


December, 1918

" Boundless Wealth"—Money and the Volume of Trade—The
Quantity Theory—The Gold Standard—How is the Volume
of Paper to be regulated ?—Mr Kitson's Ideal.

IN the November Trade Supplement an endeavour
was made to answer Mr Kitson's rather vague and
general insinuations and charges against our bankers
concerning the manner in which they do their
business. Now let us examine the larger and more
interesting problem raised by his criticism of our
currency system.

In his article in the June Supplement he told us
that "if the British public had any grasp of the
fundamental truths of economic science they would
taaow that a future of boundless wealth and prosperity
is theirs." This is a cheery and encouraging view
and, let us hope, a true one. But, that boundless
wealth can only be got if we work for it in the right
Way, Can Mr Kitson show it to us, and what are
these " fundamental truths of economic science " ?
It is easier to talk about them than to find any two

* This was the latter of two articles contributed to the
Times Trade Supplement in answer to a series in which Mr
Arthur Kitson had attacked our banking and currency system
*nd suggested an inconvertible paper currency,